South Africa’s Competition Commission has raised concerns over how Big Tech companies like Google, Meta (Facebook), TikTok, X (formerly Twitter), Microsoft, and OpenAI are affecting local media businesses.
The Commission argues that these companies are unfairly favoring foreign content, which impacts the visibility and profitability of South African media outlets.
Google Faces Potential Fines for Impacting Local Media
Among the companies under scrutiny, Google could face significant penalties.
According to the Commission’s provisional findings, Google may be required to pay between R300 million and R500 million annually for a period of three to five years.
The goal would be to compensate South African media outlets that have been harmed by the company’s practices.
In addition to fines, the Commission has recommended adjustments to Google’s search algorithm.
These changes would be aimed at directing more traffic to local news websites, thereby giving them a better chance to be seen and monetized.
The Struggles of Local Journalism in South Africa
The Competition Commission claims that Google’s current algorithm disproportionately favors foreign media outlets, making it harder for South African publishers to gain traction.
This issue is particularly problematic for smaller, community-focused and language-specific media organizations that struggle to compete with global giants.
The Commission’s provisional report suggests that this imbalance has been damaging to South African media for the past 14 years and will continue unless changes are made.
These findings are part of a larger inquiry into the media and digital platforms market, which the Commission released on Monday.
Google Responds to the Criticism
In response to the Competition Commission’s findings, Google has stated that it will review the report.
However, the company disputes the Commission’s claims that it is taking value from local publishers.
Google emphasized its ongoing investments in news products, training, and partnerships to support South African journalism.
Other Tech Giants Under Fire
It’s not just Google facing scrutiny. Meta, TikTok, and X are also under the microscope for how they handle South African news content.
The Commission is urging these platforms to stop deprioritizing South African news posts with links.
Instead, they want to see a greater promotion of local and community media.
The Commission has also suggested that both Meta and YouTube should increase the revenue share they offer to news media.
The idea is to ensure that local publishers are more fairly compensated for the digital traffic generated by their content.
Penalties for Non-Compliance
The Commission is giving the affected companies six months to implement these changes voluntarily.
If they do not comply, a 5-10% digital advertising tax could be imposed on their South African operations.
The final report from the Competition Commission is expected to be released later this year, with the companies having until April 7th to submit their responses or provide evidence.